Roblox (NYSE:RBLX) Shares Gap Up on Analyst Upgrade

Roblox Corporation (NYSE:RBLX) shares gapped up prior to trading on Monday after Wells Fargo & Company raised their price target on the stock from $55.00 to $56.00. The stock had previously closed at $47.56, but opened at $50.90. Wells Fargo & Company currently has an overweight rating on the stock. Roblox shares last traded at $52.8630, with a volume of 2,489,982 shares traded.

A number of other brokerages have also recently weighed in on RBLX. Piper Sandler cut shares of Roblox from an “overweight” rating to a “neutral” rating and reduced their target price for the stock from $100.00 to $50.00 in a report on Monday, May 4th. Cantor Fitzgerald initiated coverage on Roblox in a report on Monday. They issued an “overweight” rating on the stock. Seaport Research Partners downgraded Roblox to a “neutral” rating in a research report on Monday. Canaccord Genuity Group reduced their price objective on Roblox from $140.00 to $80.00 and set a “buy” rating for the company in a research note on Friday, May 1st. Finally, The Goldman Sachs Group reduced their target price on Roblox from $125.00 to $65.00 and set a “buy” rating for the company in a report on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $85.48.

Insiders Place Their Bets

In related news, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total value of $649,896.12. Following the completion of the sale, the insider directly owned 349,964 shares of the company’s stock, valued at approximately $15,842,870.28. This represents a 3.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Baszucki sold 50,628 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $2,292,435.84. Following the sale, the chief executive officer owned 852,214 shares of the company’s stock, valued at $38,588,249.92. The trade was a 5.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 172,783 shares of company stock valued at $8,213,616 over the last quarter. 10.05% of the stock is owned by insiders.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Arete Research upgraded Roblox from hold to strong-buy and set a $95 price target, implying substantial upside from current levels and helping support the shares. Arete upgrades Roblox to strong-buy
• Neutral Sentiment: Several law firms, including Faruqi & Faruqi, Rosen, Robbins Geller, Schall, Pomerantz, and Bronstein, Gewirtz & Grossman, issued reminders about an August 7, 2026 lead-plaintiff deadline in the Roblox securities class action. These notices keep the lawsuit in focus but are mostly procedural. Faruqi & Faruqi deadline reminder
• Neutral Sentiment: Roblox also drew attention from options traders and technical analysts, with one report pointing to unusual call activity and another citing a historically bullish signal, suggesting traders are positioning for more upside. Schaeffers bullish signal article
• Negative Sentiment: Investor-law-firm coverage continued to highlight the underlying lawsuit, which stems from Roblox’s April 30 Q1 report that showed an unexpectedly sharp sequential decline in daily active users tied to its age-verification rollout. That disclosure had already triggered a steep stock drop and erased billions in market value. Pomerantz lawsuit reminder
• Negative Sentiment: A separate media report alleging Roblox ads targeted very young children with caffeinated snack promotions could add reputational and regulatory pressure, though it is less directly tied to earnings. NY Post watchdog report

Hedge Funds Weigh In On Roblox

Several institutional investors and hedge funds have recently modified their holdings of the stock. NewEdge Advisors LLC boosted its position in Roblox by 2.3% during the first quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock valued at $597,000 after purchasing an additional 231 shares during the last quarter. Sivia Capital Partners LLC increased its position in Roblox by 70.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock worth $1,368,000 after purchasing an additional 5,363 shares during the last quarter. CW Advisors LLC acquired a new position in Roblox in the 2nd quarter worth about $272,000. Baird Financial Group Inc. raised its stake in shares of Roblox by 1.4% during the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after purchasing an additional 102 shares in the last quarter. Finally, WINTON GROUP Ltd purchased a new stake in shares of Roblox during the 2nd quarter worth about $438,000. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Roblox Trading Up 0.0%

The firm has a market capitalization of $36.51 billion, a price-to-earnings ratio of -34.41 and a beta of 1.44. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The company has a fifty day moving average price of $47.94 and a 200-day moving average price of $61.56.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The company’s revenue was up 43.4% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.32) earnings per share. On average, equities research analysts predict that Roblox Corporation will post -1.4 EPS for the current year.

Roblox declared that its board has authorized a share repurchase plan on Tuesday, May 19th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 9.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

About Roblox

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.